In international shipping, the quoted freight rate is not always the final cost. Additional charges such as Terminal Handling Charge (THC), storage, customs clearance, demurrage, detention, and other local fees can significantly increase the total logistics cost.

Understanding these charges before shipment is essential for better cost control.

1. Understand THC

Terminal Handling Charge (THC) covers the handling of containers within the port or terminal. When reviewing a quotation, ask whether THC is included in the freight rate or charged separately.

Always check:

• Origin or destination THC
• Charge per container or shipment
• Container size differences
• Other terminal-related charges

2. Control Storage Costs

Storage charges usually apply when cargo remains at a terminal or warehouse beyond the agreed free storage period.

Before shipping, confirm:

• Number of free storage days
• Daily storage rate
• When charging begins
• Whether weekends and holidays are included

Good planning and early customs clearance can help prevent unnecessary storage costs.

3. Understand Customs Costs

Customs-related costs should be separated into government charges and service-provider fees.

Import duties and taxes may depend on the product classification, customs value, country of origin, and applicable regulations. The correct HS Code and complete documentation are therefore essential to avoid delays and unexpected costs.

4. Ask for a Transparent Quotation

Do not compare logistics providers based only on the freight rate.

Ask for a clear breakdown of:

Freight + THC + Documentation + Customs Clearance + Storage Risk + Delivery + Other Local Charges

Also request a clear list of included and excluded charges.

5. Negotiate Total Cost, Not Just Freight

A lower freight rate does not always mean a lower final cost. Sometimes negotiating additional free time, transparent local charges, or an all-in quotation can save more money than simply reducing the freight rate.

Final Thought

The best logistics quotation is not necessarily the cheapest one—it is the one that provides clear costs, predictable expenses, and reliable service.

At Naval Cargo, we believe that transparency is an important part of professional logistics. Understanding your costs before the shipment moves can help your business avoid unnecessary surprises and make better shipping decisions.

Plan better. Ship smarter. Control your logistics costs.